Road construction delayed due to land acquisition issues

New Delhi: Road construction in the country could meet only about half of the target set for the current fiscal at 6,300 km till January this year, owing to various factors including land acquisition issues, Parliament was informed on Monday.

"Against the target for construction under various schemes of the Ministry during the current year, 3,038 km have been constructed till January 31, 2015, which is 10.13 km per day," Minister of State for Road Transport and Highways Pon Radhakrishnan informed Rajya Sabha on Monday.

The minister added, "During the review meetings it is observed that the land acquisition is one of the reasons for delay of completion of projects."

Out of the 17 projects awarded by NHAI during 2013-14, work has been started in case of 15 projects and in case of some of the projects progress is already 40-50 per cent.

The government has decided that no projects should be awarded until 90 per cent of the land is in possession for the EPC (engineering, procurement and construction) projects.

Ministry of Road Tranport and Highways has estimated an investment of close to Rs 80,000 crore per year for highway projects which is likely to be met through cess fund, toll ploughback, budgetary support, market borrowings etc.

Replying to a question whether the government has identified Employees Provident Fund Organisation (EPFO) as a source for borrowing funds, the minister said, "It is pre-mature to indicate utilization of EPFO as a viable source."